Deal Exit Planner

AssetMetrix’s Deal Exit Planner

Private equity fund managers often struggle with time-consuming and complex deal exit planning, portfolio management, and fee calculations, leading to missed opportunities and financial inefficiencies. Our cloud-based software solution simplifies the entire process, offering a comprehensive suite of tools for deal exit planning, scenario analysis, and seamless integration of new deals into existing portfolios.

Fund managers / general partners (GPs) will benefit from AssetMetrix’s Deal Exit Planner in the following areas:

  • Data-driven decision making: Our service provides a complete financial picture by not only modeling cashflows but also predicting management fees and carried interest, offering a comprehensive KPI analysis. This holistic approach enables fund managers to make well-informed data-driven investment decisions, improve investment strategy, and enhance overall fund performance.
  • Customizable scenario analysis: The ability to model various scenarios, including exit strategies and fund-level cashflow management, allows fund managers to plan and compare different projections and to assess the potential impact of their choices.
  • Capital optimization: Sales proceeds recycling and bridge financing help fund managers to improve their capital utilization and delay capital calls, providing more financial flexibility.
  • Compensation fee calculation: The management fee calculator ensures that fund managers have a clear understanding of their fee income over time, assisting in financial planning and budgeting. The distribution waterfall model provides clarity in carried interest prediction and profit sharing.
  • Performance transparency: By calculating KPIs at multiple levels, our service empowers fund managers with transparent and granular insights into the performance of individual portfolio companies, the fund at gross level, and the fund net of fees. This transparency aids in identifying top-performing assets and areas that may require attention.
  • Enhanced investor reporting: The predictions calculated by our service can be integrated into investor reporting, allowing fund managers to communicate anticipated performance effectively to investors and stakeholders.
  • Reduced operational risk: While a state-of-the-art IT implementation and testing framework ensure the correctness of our model calculations, our validation checks protect against faulty user input and ensure that the data entered is accurate and consistent. This significantly reduces the operational risk of a fund manager compared to an Excel-based solution.

Imagine effortlessly modeling various exit scenarios, accurately calculating fees and carried interest, and seamlessly adding new or add-on investments to your portfolio – all in one platform, transforming the way you manage your private equity fund. Compare different scenarios with each other to find out the drivers for performance and risks of your portfolio. Should an upcoming investment opportunity be financed by a bridge financing facility? Can a partial sale accelerate the timing when the carried interest kicks in?

Rest easy knowing that your sensitive financial data is protected with state-of-the-art security measures as our platform complies with industry regulations, ensuring data integrity and privacy. Our intuitive interface simplifies complex financial tasks, providing a seamless experience for fund managers. Say goodbye to spreadsheet headaches and hello to efficient portfolio management.

Let’s take a quick tour of our solution to showcase how it can revolutionize your private equity fund management with the following list of comprehensive software features:

  • Interactive deal-level cashflow modeling: Users can input their assumptions for future cashflows, including investments, income (e.g. dividends), and sales proceeds.

  • Exit assumptions: Users can enter exit multiple and date for portfolio companies and the model calculates the sales cashflow and the fair market value growth.

  • Partial sales: In advanced mode, users can directly input future sales cashflows allowing for partial sales modeling.

  • Add-on investments: Users have the flexibility to enter additional investments into new companies or equity injections into existing portfolio company investments.

  • Fund-level cashflow management: Our service calculates cash in- and outflows to/from portfolio companies, tracks capital calls from investors, and predicts capital distributions.

  • Bridge loan financing: Users can setup loan facilities and decide, on a deal-by-deal basis, whether loan cashflows predicted by our solution should be used within the financing process.

  • Recycling of sales proceeds: Our service allows for the reinvestment of sales proceeds into other portfolio companies.

  • Carried interest prediction: A key feature is our distribution waterfall model, which calculates future carried interest for the general partner (GP) and distributions to limited partners (LPs). The model is parameterized according to the clauses in the Limited Partnership Agreement (LPA). Our model supports both European (whole-fund) and American (deal-by-deal) distribution waterfalls, catering to different fund structures. Covered waterfall stages are return of capital, preferred return, catch-up, and residual profit split.

  • Management fee calculator: Our service includes a management fee calculation engine, which forecasts future fees that the fund manager will receive. This prediction supports time-varying rates and bases and takes the future development of the invested costs into account.

  • Comprehensive PE performance on different levels: In addition to cashflow modeling, our service offers a robust Key Performance Indicator (KPI) analysis. It calculates essential metrics such as Internal Rate of Return (IRR) and multiples on three levels: portfolio companies, fund gross, and fund net.

  • Data integration: Past deal and fund level data is integrated with all predictions of our models. Historical data provided by the client is uploaded using a fully automated file interface.

Satisfied fund managers have achieved remarkable results with our software, enhancing their fund’s performance management and internal productivity. What sets AssetMetrix apart is our focus on private equity fund management, cutting-edge technology, and a commitment to providing the best value in the market. Our transparent pricing structure offers flexibility to fit your fund’s needs.

Analytics solutions demo

Understanding your needs and requirements is at the very center of what we do. Use the link below to schedule a Deal Exit Planner demo!

Arrange a demonstration

Featured Analytics Insights